MarketLine Blog

Posts written in November 2012

Wii U hits Europe today


Having been released in North America on November 18th, 2012, Nintendo’s Wii U has seen great consumer demand in its first few days on sale. In fact, Nintendo of America’s president Reggie Fils-Aime has claimed that the console is effectively sold out at retail, and that 400 thousand Wii U units were sold in its first week on sale. Nintendo will hope to repeat similar volumes of sales in Europe, where the console is being released today. The situation mirrors that of the launch of the Wii U’s predecessor, the… Read more

L’Oreal’s acquisition of Urban Decay expands a strategy of premium product acquisiton


L’Oreal has announced its plans to acquire cosmetic brand Urban Decay, demonstrating further signs of a new strategy exploiting specialist brands in emerging markets. Urban Decay, owned by private equity firm Castanea Partners, is believed to have been sold for between $300-400m to L’Oreal, although the financial details were not fully disclosed. Urban Decay’s specialist, high end brands have enjoyed success since its creation in the 1990s. It is considered more edgy and fashionable, making it appealing to a younger demographic. These types of premium brands represent a significant proportion… Read more

Jaguar Land Rover to start production in China


It was announced on Sunday (18th November) that British car manufacturer Jaguar Land Rover (JLR) has signed a groundbreaking agreement with China-based car manufacturer Chery Automobile (Chery) that will see JLR make vehicles in China for the first time. The $1.6bn joint venture marks the end of a long period of negotiation between Chery and JLR’s owner, Tata Motors and production is expected to begin in 2015 once the construction of a factory in Shanghai is complete. It signals the company’s first move into overseas production, but JLR has been… Read more

Half-year 2012/2013 results show Marks & Spencer plan to become international, multi-channel retailer is working


In November 2010, Marks & Spencer (M&S), a leading UK retailer, announced a three year plan to transform the company into an international, multi-channel retailer. The company announced plans to invest between £850m (approximately $1,363m) and £900m (approximately $1,443m) by 2013 to both enhance the UK business, and develop international and multi-channel capabilities. In the company’s 2012 Annual Report, Marks and Spencer’s UK sales were slow. Clothing and home revenue, at £4.2bn (approximately $6.7bn) was down 0.9% on the year before, while food revenue was up 3.9%, with revenues of… Read more

HSBC profits hit by provisions


HSBC today announced third quarter pre-tax profits of $3.5bn. On the face of it, this may look like a healthy figure, but it in fact represents a 51% decrease on the figure it posted for the same period last year and a drop in ROE from 13.2% to 5.8%. The reason: provisions for regulatory fines.   The bill for PPI mis-selling continues to spiral for UK banks as they struggle to quantify just how much they will need to satisfy the slew of claims headed their way and HSBC is… Read more